The week in review
- New home sales rose less than expected to 662K
- Case-Shiller home prices rose 6.6% y/y
- 4Q23 q/q annualized GDP revised upwards to 3.4%
The week ahead
- Job openings
- Nonfarm payrolls
- Unemployment rate
Thought of the Week
In 2023, stocks and bonds both rallied. The first quarter of 2024, however, saw stocks reaching new heights, while bonds experienced a modest downturn, as the market scaled back its rate cut expectations following surprisingly strong economic data.
As shown in the chart of the week, U.S. large cap stocks continued their dominance, outshining other asset classes with a 10.6% return. However, unlike last year, the rally was relatively broad-based as all sectors, save one, contributed to the gains. Meanwhile, small caps, which lean more toward value stocks, posted a relatively modest 5.2% gain. Internationally, developed markets (DM), with a 5.8% return, outpaced their emerging market (EM) counterparts. Within DM, Japan’s export-driven stock market and European equities both reached record highs, driven by the Yen’s multi-decade lows and excitement around innovations in the healthcare sector, respectively. On the other hand, EM equities were up by a slight 2.2%, as a surge in the dollar took a bite out of impressive gains in Taiwan, Korea and India, while China’s continued economic challenges manifested in lackluster market performance.
Within fixed income, less rate-sensitive high yield bonds gained 2.1% on the back of further spreads compression, while the broader market declined 0.8%, as a rise in yields weighed on bond prices. In the alternatives space, commodities rebounded, buoyed by a broad uptick in prices, whereas rate-sensitive REITs came under pressure and ended the quarter down 1.3%. Lastly, cash, with a 1.3% return, lagged many asset classes while still carrying a reinvestment risk amid potential rate cuts.
Chart of the Week: Source: FactSet, J.P Morgan Asset Management.
Thought of the week: Source: FactSet, J.P Morgan Asset
Management.
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Originally Posted April 1, 2024 – Weekly Market Recap
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Opinions and estimates offered constitute our judgment and are subject to change without notice, as are statements of financial market trends, which are based on current market conditions. We believe the information provided here is reliable, but do not warrant its accuracy or completeness. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. The views and strategies described may not be suitable for all investors.
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